Artificial intelligence (AI) is expected to create a job crisis. However, such technology has not caused as much crisis in India as compared to the global market. More new jobs are being created in the country than the decrease in AI-related employment. Japan-based financial services provider Nomura has released a report in this regard.
On the other hand, due to changes in technology, problems are arising for new entrants and employees working in junior categories in the IT sector. There is a demand for senior professionals in the AI sector. Nomura said that they are being sought after more by companies.
According to the report, AI-related employment is on the rise in countries like India, China and the Philippines. AI has taken 60,000 jobs in Asia, while it has added 1.3 million new jobs. A study of 651 IT companies in the country says that 55% of companies have reduced the employment of freshers. According to recruitment firm Xpheno, IT companies hired 6 lakh people in the financial year 2022. This has come down to 1.40 lakh in 2025-26. On the other hand, the interest in hiring senior employees has increased significantly compared to the previous year. Nomura has called this a ‘K’ shaped shift.
In simple terms, the employment market is divided into two categories. While the demand for freshers is decreasing, seniors are getting priority. Companies are looking for people with long experience in management and business. This trend has also been seen in the areas where AI is used the most in South Korea.
In India, new jobs have been created in areas such as annotation or preparing data for AI, linguistics, and IT services related to AI. While support and service-based jobs are coming to India, China needs highly skilled graduates to build AI models. Except for technology, very few jobs are coming in all other sectors.
Instead of laying off a large number of people, companies in India have reduced new jobs. That is, there is a trend of keeping old people working. This is called silent firing. On the other hand, companies have almost reduced campus recruitment in colleges. Overall, the banking and technology sectors are affected by AI. In banking, its impact is 58% and in technology, its impact is 30%.
AI has a big impact on data entry, customer care, junior coding, software testing and back office routine work. However, employment is safe in manufacturing, construction, healthcare and education. Out of the total jobs created due to AI, the technology sector accounts for 90%. All other sectors have 10%.
India has now become the back office hub of the IT and service sector of the world. AI is making the simple and routine tasks that India’s IT sector has become stagnant, and this is expected to create a major crisis for traditional employment.
Despite the crisis for India, millions of engineers and tech talent are a huge resource in the domestic market. Employees can seize great opportunities by learning new skills. AI will no longer be limited to routine tasks. It is transforming itself into an agentic system that makes its own decisions. As a result, the employment market will completely change in the next few years, the report said.
